P E R F O R M A N C E To be a world class business organisation focused on cost effective environmental solutions which shall benefit mankind. “ ” I PROGRESSIVE IMPACT CORPORATION BERHAD I ANNUAL REPORT 2017 36
PERFORMANCE
To be a world class business organisation focused on cost effective environmental solutions which shall benefit mankind.
“ ”
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G R O U P B U S I N E S S A N D O P E R A T I O N S
Progressive Impact Corporation Berhad (“PICORP”) through its subsidiary companies (collectively, “PICORP Group” or “the Group”) are involved in the provision of environmental consultancy and monitoring, laboratory testing and wastewater treatment & solution services to various governmental bodies and private sectors which involved namely in the oil and gas, energy, petrochemicals, manufacturing, properties developers and constructions sectors. PICORP was incorporated in 1991 as an investment holding company and commenced its operation in 1992. PICORP was listed on the second board of Bursa Malaysia (“Bursa”) in October 2004 and was transferred to the Main Board of Bursa in January 2008.
PICORP Group’s products and services are offered in Malaysia, Indonesia and Kingdom of Saudi Arabia (“Saudi Arabia”) and can be categorised into three main segments:-
TYPE OF SERVICES
• Environmental Sampling & Testing • Food Safety testing • Halal &Toyyiban Assurance testing • Pharmaceutical & Medical Devices
Testing •
LABORATORY TESTING SERVICES
TYPE OF SERVICES
• Design, technology provider and construction of sewage treatment plants
• Operation & Maintenance of sewage treatment plants
WASTE WATER TREATMENT & SOLUTION
TYPE OF SERVICES
• Environmental Consultancy • Environmental Monitoring • Environmental Monitoring Equipment & Systems
Integration
ENVIRONMENTAL CONSULTANCY & MONITORING SERVICES
• Environmental Data Management • Environmental Training • Public Health Management
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PICORP Group is a well-established participant in the Malaysian environmental market particularly in the segment of environmental monitoring and laboratory testing services, holding a market share of approximately 20%.
PICORP is an experienced environmental services provider in Malaysia. Over the last 22 years, PICORP has through its subsidiaries Alam Sekitar Malaysia Sdn Bhd (“ASMA”) and ALS Technichem (M) Sdn Bhd (“ALS”) played an integral role in helping develop and shape the Malaysian environmental monitoring services market and will continue to do so.
PICORP Group has begun exploring the international market since year 2005 when it expand its laboratory testing services to Indonesia and the environmental management services to Saudi Arabia.
P I C O R P G R O U P A T A G L A N C E
Market Capitalisation RM85 million As at 31 December 2017
Key Business Activity
1 Environmental Consultancy & Monitoring
2 Laboratory Testing Services
3 Wastewater Treatment & Solution
Market Presence
1 Malaysia
2 Indonesia
3 Saudi Arabia
Total Number of Employees Working in Respective Country
256
174
81 511
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B U S I N E S S O B J E C T I V E S A N D S T R A T E G I E S
It is PICORP’s Vision to become a world class business organisation focused on cost effective environmental solutions which shall benefit mankind. Its Mission is to be a world class business organisation providing innovative technology and quality products and services in the field of environmental solutions for local and overseas markets through a team of highly motivated, competent and quality employees.
PICORP Way core values set of principles and behaviour underline PICORP Group way of carrying out its business and operations worldwide. PICORP Way streamlines the work culture, the people and the processes within the group towards achieving the company’s goals and objectives through the following:-
PICORP group’s Business Strategies focuses on seven paradigm that cover Growth, Margins, Cash, Velocity, Customer Management, Technology and Risk Management to achieve sustainable business performance for growth in the long-term.
The Group has recently made a significant move for its growth strategy where in ensuring sustainable growth moving forward, the Group has taken a bold step by re-designating its Group Chief Executive Officer, En. Johar Yusof as the Chief Executive Officer of ASMA International Sd. Bhd to lead the International Business in Saudi Arabia. The move signifies the Group’s commitment towards enhancing returns on its investments in the country. Such commitment requires focus on the business development activities, good monitoring and control on the operation and having adequate financing in place to fuel the growth. The Group believe that all these can be better achieved by dedicating the Group’s best leader in upholding the role.
Having taken the bold step, the Group is mindful of the needs to have a good, dependable and reliable leader to hold the fort and hence, has re-designate its Independent Non-Executive Director, Dato’ Dr. Lukman bin Ibrahim as the Group Executive Director to oversee the Group’s business direction and activities.
Process Excellence
Set standards and deliver measurable performance in
everything we do
Competitive
Strong desire to win and be the best in our offerings
Result Oriented
Always start with the end in our mind. Define results that we want to achieve in advance
Innovative Obedient to Allah
P I C O R P
Peak Performance
Abide by the orders of Allah and avoiding His
prohibitions
Continuously translate ideas and innovation into products
and services that create values to the customers
Perform to the maximum of our ability with feelings of
confidence, effortlessness and total concentration on the task.
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A dedicated team was also formed within the Corporate Office in Malaysia to support the International operation focusing on the strategic financing, digital marketing communication and technical proposal roles. Recognising the importance of achieving long term value creation for its shareholders through innovation, the Group has also established an Innovation Division within the Corporate Office to focus towards accelerating the Group’s product development activities and time to market.
P I C O R P G R O U P B U S I N E S S S T R A T E G I E S
GROWTH STRATEGIES MARGIN STRATEGIES CASH STRATEGIES VELOCITY STRATEGIES
1 2 3 4 Organic growth via market and product development in countries that the Group has already had its presence namely Malaysia, Indonesia & Saudi Arabia. Accelerating growth via partners, allies and collaborators who complement our strengths to create a win-win situation
Continuous improvement of operational efficiency & cost management
Ensuring adequate financing facilities in place to ensure smooth project execution. Ensuring timely collection of the receivables. Maximise returns of the Group’s cash deposits.
Focus towards Process Excellence Develop competencies and skills that increases job effectiveness and efficiency resulting in higher productivity
Initiatives Initiatives Initiatives Initiatives Offer Build-Operate-Transfer / Build-Own-Operate project business models to strategic accounts for integrated environmental monitoring system / waste water treatment plants Group re-organisation Identify strategic partners that could complement our strength
Integration of automated analysers with Laboratory Information Management System Long term collaborations with customers. Utilisation of cloud computing Build strong relationship with suppliers - pay on-time or earlier for early payment discounts.
Strategic Financing activities Ongoing monitoring of its Days Sales Outstanding Placements of the Group’s cash deposit in a tax-free investment funds.
Implementation of Enterprise Resource Planning system across the Group Roll out talent management program for key positions
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Expected Outcome Expected Outcome Expected Outcome Expected Outcome Long term concession contracts for business sustainability Market Penetration of the strategic key accounts
Reduced overhead cost per job. Reduced client acquisition costs Greater flexibility and reduced IT maintenance costs Better leverage in negotiation with the strategic suppliers
Mitigate the risk of delayed projects execution due to insufficient financing. Maintaining the debtors aging within the approved credit period. Efficient and effective cash investments.
Optimise business processes. Systematic Talent Acquisition, Talent Development and Talent Retention process, aligned to the business objectives.
CUSTOMER MANAGEMENT STRATEGIES TECHNOLOGY STRATEGIES RISK MANAGEMENT
STRATEGIES
5 6 7 Connect to customers, exceed their expectation and customer retention.
Focus on developing the innovative technologies and services offered by the Group
Develop a structured and coherent approach to identifying, assessing and managing risk
Initiatives Initiatives Initiatives Implementation of the Customer Relationship Management system Conduct Customer satisfaction survey periodically Establishment of digital marketing communication division
Set up an Innovation Division within the Group that focus towards accelerating product development and time to market
Implementation of Group wide Enterprise Risk Management system Streamlining the risk assessment process throughout the management and risk committees.
Expected Outcome Expected Outcome Expected Outcome Securing orders from new customers Increased repeat orders from existing customers. Continuous improvement on quality of services Wider reach towards new prospects & building strong relationships with customers to enhance company’s long-term performance.
Increased the speed of offering enhanced products value proposition to customers
Improving the quality of decision making process for strategic business pursuits and investments Embedding the risk management culture and mindset in the employees’ day-to-day activities
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5 - Y E A R G R O U P F I N A N C I A L H I G H L I G H T S
FINANCIAL YEAR ENDED 31 DECEMBER 2017 2013 2014 2015 2016 2017 Key Operating results (RM Thousand)
Revenue
96,807
83,989
80,529
87,402
83,876
Profit from operations
33,386
22,455
13,125
7,264
14,106
Finance Costs
(460)
(95)
(265)
(977)
(1,282)
Profit before tax
32,926
22,359
12,860
6,287
12,824
Profit / (Loss) after tax
23,764
13,991
(1,006)
(2,173) 7,509 Profit / (Loss) attributable to owners of the Company
20,881
15,164
(2,283)
(7,407) 1,006
Other Key Data (RM Thousand)
Total Assets
159,752
167,960
178,802
165,752
154,743
Total liabilities
28,154
32,809
55,313
51,242
43,358
Shareholders’ Equity
110,253
111,067
96,041
88,241
84,581
FINANCIAL RATIOS
Revenue Growth 8% -13% -4% 9% -4% Operating margin 34% 27% 16% 8% 17% Return on average shareholders' equity
22% 13% -1% -2% 9%
SHARE STATISTICS
Basic earnings per share (sen) 2.40 1.30 (0.30) (1.10) 0.20 Net dividend per share (sen) 1.10 0.61 0.61 0.61 0.50 Dividend yield (%) 7.05 3.07 3.25 4.36 3.85 Payout ratio (%) 49 44 >100 > 100 > 100 Price earnings ratio (times) 7 15 (62) (13) 65 Share price as at 31st December (RM)
0.16 0.20 0.19 0.14 0.13
Net assets per share attributable to owners of the Company (RM)
0.17 0.17 0.15 0.13 0.13
Market Capitalisation as at year end (RM Mil)
103 130 123 92 85
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F I N A N C I A L R E S U L T S A N D F I N A N C I A L C O N D I T I O N S
Key Ratios
The following table sets forth the key financial ratios based on PICORP Group’s financial statements:
FY 2017 FY 2016
Revenue increased / (decreased) (4%) 9% Profit Before Tax Margin 15% 7% Current Ratio (times) 1.97 1.70 Gearing Ratio 0.11 0.19
Revenue
The Group’s revenue decreased from RM 87.4 million to RM 83.8 million during the financial year, a decrease of 4% as compared to the previous financial year.
The decrease in revenue was mainly due to the expiry of the concession contract on 13 April 2017 with Department of Environment (“DOE”) for the provision of Environmental Monitoring and Data Management services resulting in reduction of revenues from concession contract by approximately RM16.3 million compared to previous year. On the other hand, revenues from the non-concession contracts have increased by RM12.7 million resulting in a 19% increase of revenues from the non-concession contracts. The increase in revenues from the non-concession contracts was a positive indicator on the Group’s ability to recover the loss of revenues from the concession contract.
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Financial Year ended 31st December
2017 (RM Million)
2016 (RM Million)
Increase / (Decrease)
(RM Million)
Increase / (Decrease)
(%) Revenues from Concession Contract 6.6 22.9 (16.3) (72)
Revenues from Non-Concession Contract 77.2 64.5 12.7 19
Total 83.8 87.4 (3.6) (4)
Profit Before Tax (PBT)
The Group’s PBT increased by 104% from RM6.3 million in the previous year to RM12.8 million for the current year resulting an improvement to the PBT margin from 7% in FY 2016 to 15% for FY 2017. The results have improved as there was no major impairment incurred during FY 2017 on the Group’s investments as compared to the previous year where there was an impairment of goodwill amounting to RM10.9 million.
The cost of sales increased by 24% to RM22 million during the year as compared to RM17.7 million in the previous year. This is attributed mainly by the increase in revenues from the non-concession contract. The other operating expenses reduced by 52% from RM33.1 million in previous year to RM 16million for FY 2017mainly attributed by the reduced impairment and reduction of operating costs related to the concession contract. The rate of reduction of operating costs in relation to the concession contract is not linear to the reduction of its revenues as the Group decided to maintain its experienced human capital as investment towards securing and delivering future contracts.
Current Ratio
As at 31 December 2017, PICORP Group’s current ratio was 1.97 times, which was higher compared to 1.70 times as at 31 December 2016. This was mainly due to increase of amount due from customer on contract and tax recoverable and reduction of the Group’s trade and other payables by 36% from RM24.7 million in the previous financial year to RM15.9 million for the current year
C A P I T A L M A N A G E M E N T
PICORP Group business has been financed via a combination of internal and external sources of funds. The internal sources comprise shareholders’ equity and cash generated from the business operations while external sources are from various credit facilities extended to PICORP Group by financial institutions. PICORP Group’s principal utilisation of funds has been for its business growth and operations.
As at 31 December 2017, PICORP Group had cash and bank balances of RM29.8 million. The Group’s current borrowings remain marginally the same at RM21 million and the trade and other payables reduced by 36% from RM24.7 million in FY 2016 to RM15.9 million in FY 2017 resulting in Group’s net debt for the year reduced by 50% from RM 15.4 million in FY 2016 to RM 7.8 million in FY 2017. The Group has no long-term borrowings.
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The Board of Directors of PICORP is of the opinion that, after taking into consideration the cash and cash equivalents, trade receivables, expected funds to be generated from operating activities and amount unutilised under the existing banking facilities, PICORP Group will have adequate working capital to meet their present and foreseeable requirements for a period of 12 months from the date of this Annual Report.
PICORP Group’s material capital commitments as at FY 2017 is RM6.2 million mainly for the establishment of new laboratory facilities in Pekan Baru to cater for the business expansion in laboratory testing services segment in Indonesia.
The Board of Directors of PICORP is of the opinion that, after taking into consideration the cash and cash equivalents, the trade receivables, the expected funds to be generated from operating activities and the amount unutilised under the existing banking facilities, PICORP Group will have adequate working capital to meet their present and foreseeable requirements for a period of 12 months from the date of this Annual Report.
PICORP Group’s material capital commitments as at FY 2017 is RM6.2 million mainly for the establishment of new laboratory facilities in Pekan Baru to cater for the business expansion in laboratory testing services segment in Indonesia.
PERFORMANCE BY CORPORATE BUSINESS SEGMENTS
1. ENVIRONMENTAL CONSULTANCY AND MONITORING SERVICES
FY 2017 RM ‘000
FY 2016 RM ‘000
Revenue 23,972 42,364 Profit / (Loss) from operations (296) 5,641 Revenue Increased / (Decreased) (43%) 14% Operating margin (1%) 13% Malaysia : Saudi Arabia revenues 68% : 32% 82% : 18%
Revenues for the environmental consultancy and monitoring services segment were derived from the Malaysia and Saudi Arabia operation where for FY 2017, the Malaysia operation was represented mainly by the revenues from ASMA, contributing 66% of the segment’s total revenues whilst the Saudi Arabia operation which was represented mainly by Saudi Asma Environmental Solutions (“Saudi Asma”) contributed 32% of the segment’s total revenues. The reduction of revenues for this segment was mainly due to the expiry of the concession contract. Operating profit for ASMA operation for the FY 2017 was RM0.9 million and Saudi Asma turnaround to breakeven with operating profit of RM0.07 million. Profits from ASMA and Saudi Asma were however offset by the losses recorded by the preliminary expenditures incurred by a newly incorporated subsidiary in Saudi Arabia named ASMA Advanced Solutions (“Asma Advanced”) resulting in operating loss amounting to RM0.3 million for the segment.
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Operational Highlights
- Malaysia operation
ASMA, the main subsidiary for the Malaysia operation for the environmental consultancy and monitoring segment is involved in providing environmental quality monitoring services for air quality, river water quality, drinking water quality, marine water quality, ground water quality, noise and odour. The customer base comprised mainly the government agencies, states utilities provider and market players from the oil & gas, petrochemical and power industries.
Although the pursuit to recover the loss of its concession revenues was challenging in FY 2017, as part of the growth strategy, ASMA continues to widen its market reach and leverage on its 22 years’ experience managing an integrated environmental quality monitoring system by offering similar solution to the relevant government agencies and industry players. The above strategy has enabled the company to achieve a breakthrough when it attained the highest non-concession orders in its 22 years of experience with total amount of RM 26.3 million during the financial year. In the past, the average value of non-concession orders attained by ASMA was around RM 10 million per annum. The achievement signifies ASMA ability to grow its customer and revenue based moving forward.
The company has also received from the DOE, the approval to be the certified provider for the Continuous Emission Monitoring Systems (“CEMS”) and Predictive Emission Monitoring Systems (“PEMS”). ASMA differentiates itself from the other players with PEMS solution that offers software-based solutions with ability to provide reliable and accurate real-time emission estimation with lower total cost of ownership.
- Saudi Arabia operation
Saudi Asma, the main subsidiary for the Saudi Arabia operation for environmental consultancy and monitoring segment is involved mainly in providing public health and environmental management services. The customer base comprised mainly the government agencies. Presently, Saudi Asma has an ongoing contract with the Jeddah Municipality for the pest control monitoring services and the Makkah Municipality for the health monitoring services. In FY 2017, Saudi Asma’s business has shown improvement as it began to turnaround and breakeven at operation profit level. The current ongoing contract with the Jeddah Municipality for the pest control monitoring services is progressing well and in addition Saudi Asma has been ranked as the number 1 Health Monitoring services provider by the Makkah Municipality. Saudi Asma has recently on 26 March 2018, been awarded a 3- year contract by the Jeddah Municipality - for operation and development of the Jeddah Municipality’s public health laboratory in Jeddah. This signifies the competitiveness of Saudi Asma and the trust that has been built with the relevant local authorities over the years. The company continues to promote and market the Group’s core competency in environmental monitoring services to the Saudi Arabia market by participating in relevant tenders open by the relevant government agencies and industry players.
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Looking Ahead
- Malaysia operation
Environmental regulations remain as the main driver of business opportunities.
The DOE is presently moving into new enforcement approach based on self-regulation and performance monitoring instead of command and control and compliance monitoring based. This new approach encourages and facilitates the industry players to improve and comply within an agreed timeframe. ASMA in this case would have the opportunity to offer its total environmental solution that covers from the point source to the dashboard. This will enable the industry players to establish a comprehensive environmental performance monitoring system within their operation effectively and efficiently. The Clean Air Regulation 2014 shall continue to be one of the drivers that provide opportunities to ASMA in offering its CEMS and PEMS.
Malaysia’s present and upcoming mega infrastructure projects such as the Mass Rapid Transit Line, Malaysia’s East Coast Rail Line, Kuala Lumpur-Singapore High Speed Rail project and many others may create opportunities for ASMA to provide environmental monitoring services to the relevant parties that need to comply with the Environmental Quality Act requirements.
- Saudi Arabia operation
Moving forward, the Saudi Arabia operation will be carried out by two subsidiaries that are Saudi Asma and Asma Advanced. Saudi Asma will continue focusing on public health and environmental management whilst Asma Advanced will focus on water and wastewater management scope of services. The solution offered to the prospects shall be based on the existing technology, products and services of the Group as well as from other sources acquired through collaborations and strategic alliances.
The General Authority of Meteorology and Environmental Protection of Saudi Arabia has published several invitations for pre-qualification submissions for several projects related to various environmental management programs in Saudi Arabia, in which Saudi Asma has participated in the pre-qualifications submission and aims to bid and hope to secure.
It is the intention of the Group to grow Asma Advanced to secure for long term concession contract in Saudi Arabia for projects related to water and wastewater management which are under the purview of authorities such as Water & Electricity LLC and National Water Company
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2. LABORATORY TESTING SERVICES
FY 2017 RM ‘000
FY 2016 RM ‘000
Revenue 50,308 42,610 Profit from operations 20,217 17,443 Revenue Increased / (Decreased) 18% 0% Operating margin 40% 41% Malaysia : Indonesia revenues 56% : 44% 62% : 38%
Revenue from laboratory testing segment increased by RM7.7 million or 18% which was mainly attributed by the increased in revenues from its operation in Indonesia. The growth of revenues in Indonesia was contributed by the delineation and excavation project carried out in Sumatera in relation to facility remediation and land restoration activities for Chevron Indonesia.
The profit from operations for the laboratory testing segment increased by RM 2.8 million or 16% and the operating margin for the segment remained healthy at 40%.
The contribution of the Indonesia operation to this segment has been on increasing trend for the past 5 years and it is forecasted that the Indonesia contribution will continue to grow given the vast opportunities that lies ahead in the country.
Operational Highlights
- Malaysia operation
During the financial year, our Malaysia laboratory reinforced its position in food and pharmaceutical analysis when The Malaysia Islamic Development Department (“JAKIM”) approved ALS
Malaysia as their Halal Panel laboratory. With this, ALS Malaysia became the first international commercial laboratory to be awarded the Halal Panel laboratory status in Malaysia.
In addition, the laboratory was also awarded with the IKM President Laboratory Award (Commercial Laboratory category). This prestigious award is accorded every three years recognising excellent achievement in the development of the professionalism and practice in chemistry.
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In October 2017, ALS Malaysia completed the mobilisation of key laboratory equipment and personnel to its new branch in Penang. The ISO 17025 accreditation is targeted to be received by the laboratory in second quarter of 2018.
- Indonesia operation
During the financial year, the Indonesia operation has set up a new laboratory in Pekan Baru, Sumatera that focuses on the provision of field sampling works (soil and water).
ALS Malaysia new branch in Penang
ALS Penang – Microbiology Laboratory
ALS Indonesia new branch in Pekan Baru, Sumatera
ALS Sumatera – Wet Chemistry / Extraction Laboratory
ALS Sumatera – Gas Chromatography room
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As part of the process excellence initiatives, the ALS Indonesia has during the year successfully rolled out the implementation of the ALS Group Laboratory Information Management System (“LIMS”) known as ANGLE LIMS. The system integrates all the Laboratory Instrument to enable direct data import from the instrument to reporting and billing, which eliminates human intervention and increases data integrity. The ANGLE LIMS is also applied in ALS Malaysia.
ANGLE LIMS:
• A computerized information management system designed for laboratories;
• Manages lab data from sample log-in to reporting;
• Interfaces with analytical instruments;
• Sorts and organises data into various report formats;
• Supports and enhances business processes of the lab.
Looking ahead
- Malaysia operation
The Malaysia operation remains focused in its organic growth strategy and continuous enhancement of its operational efficiency through effective cost management.
Moving forward, ALS Malaysia aims towards increasing its food safety analysis works which includes the halal and toyyiban assurance, leveraging on the ever-growing food and beverage industry. Our laboratory facilities and human capital resources will be enhanced in order to support the above strategy. The Malaysia operation is well positioned to continue delivering sustainable profits in the coming years.
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The food safety analysis provides vast opportunities where its compliance portfolio spans the whole value chain from farm to fork.
- Indonesia operation
The contribution of the Indonesia operation to this segment has been on an increasing trend for the past 5 years and the contribution from Indonesia is expected to continuously grow given the vast opportunities that lie ahead in the country.
Moving forward, the Indonesia operation aims towards expanding its Food Safety Analysis business, hence, there will be an upgrade on its microbiology facility and a setup of the food chemistry laboratory in its headquarters in Sentul.
Presently, majority of the environmental samples received by ALS Indonesia are derived from the oil & gas and mining industry. Moving forward, ALS Indonesia aims towards diversifying the industry to cover manufacturing and power industry as well.
3. WASTEWATER TREATMENT AND SOLUTIONS
FY 2017 RM ‘000
FY 2016 RM ‘000
Revenue 9,154 3,128 Profit / (loss) from operations 1,717 (1,338) Revenue Increased 193% 43% Operating margin 19% (43%)
During the financial year, the Group has restructured the business development and execution activities for its patented product, Bi-Act SDO where it is place under the purview of ASMA. Alam Sekitar Eco-Technology (“ASET”), remains as the patent holder of the technology and continues to be responsible for the design and system supplies’ scope of work. The re-structuring is undertaken to enable Bi-Act SDO realise its potential better by leveraging on ASMA’s brand for its established track records and financial strength.
The above strategy has resulted in improved results for this segment where the revenue increased by 193% and recorded an operating profit of RM1.7 million with operating margin of 19%.
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The product development of the Bi-Act SDO shall be carried out by the newly established Innovation Department with the first objective is to launch Bi-Act SDO 2.0.
Looking ahead
For financial year 2018 onwards, the wastewater treatment and solution is no longer be reported on its own. It shall be part of the solution for the environmental segment as well as the International segment.
On the merits of the excellent value proposition offered by the technology, the Group has move forward to reach out for potential use of the innovative technology in Saudi Arabia. Growth opportunities have been identified, Asma Advanced, the new joint venture company in Saudi Arabia will leverage on the strength of its local network to seize the available wastewater treatment business opportunities in Saudi Arabia.
B U S I N E S S R I S K S
Risk management is embedded in our day-to-day operations. Governance policies and procedures are developed with clear accountabilities for senior management to effectively identify, assess, prevent, record and mitigate all material risks for the Group.
In pushing forward with our strategy and execution plans, key risks have been identified and continuous monitoring are undertaken to ensure our exposure to all anticipated risks stays within the Group’s overall risk appetite.
Key Group Risks Description Key Mitigation Steps Business expansion & growth
Initiate and develop high impact projects
- Offer Build-Operate-Transfer / Build-Own-Operate project business model to strategic accounts that requires strategic facilities for integrated environmental monitoring system / waste water treatment plants.
- Participate in major tenders and collaborate with strategic partners that could complement our strength.
Human Capital Management
To equip the Group with efficient and effective Talent Management Programme and succession planning to drive the business plan forward
- Identify key areas and key positions
- Identify capabilities for key areas and key positions
- Identify interested employees and assess against capabilities
- Develop succession planning and knowledge transfer plan
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- Set Human Resource priorities to help achieve business goals.
- Evaluate effectiveness. - Measure, Monitor, Report
Human resources policy
To have standardised human resource policies across the Group that shall represent the specific guidelines and common practices.
- Review and align human resources policies and practices across the Group.
Foreign investments Risks relating to changes in Government’s policies, changes in economic conditions, fiscal or monetary policies that may materially effect the Group’s operation abroad
- Diversify the clients base to cover wide range of industries to avoid dependency only on a single customer or segment.
- Seek early advice from the local business lawyer to ensure compliance to the local laws.
- Opt for natural hedging in financing the local projects
- Consider insurance policy to mitigate the political risk
D I V I D E N D
The company has a Dividend Policy to pay a total net dividend payout of not less than 40% of its net profit after tax and minority interest.
The Board of Directors has also recommended a final single tier dividend of 0.50 sen per share for the financial year ended 31 December 2017, subject to the shareholders' approval at the forthcoming Annual General Meeting. The proposed final dividend shall be equivalent to RM3,283,045 net dividend.
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SUSTAINABILITY
Our business is not Sustainable Business,
it’s Sustainability Business “ ”
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S U S T A I N A B I L I T Y D E V E L O P M E N T A T P I C O R P
Recognising the ever-increasing relevance of sustainability to our business value, this maiden statement on sustainability aims to illustrate our strategic approach to address sustainability challenges and opportunities in contributing towards the betterment of the business, environment and society.
In line with the strategy to achieve sustainable business performance for growth in the long-term, PICORP remains committed to operating our business in an environmentally and socially responsible manner. As part of our journey to incorporate sustainability business practices we continue to live by the Seven PICORP Paradigm of Growth, Margin, Cash, Velocity, Customer Management, Technology and Risk Management assimilated into our business operations as well as corporate culture.
Being a Group of companies, which is predominantly involved in the provision of environmental monitoring services and consultancies as well as laboratory testing services, sustainability is already part and parcel of our business and embedded in the Group’s organisational spine. This conviction is further reinforced in the PICORP WAY VALUES of:
Insofar as Sustainability is concern, PICORP does not only practice sustainable business practices by providing a conducive working environment for its employees and engaging with the business and public community, it is also an engine towards compliance to the relevant environmental regulations through its business proposition as the Integrated Environmental Solutions Provider.
To further elaborate PICORP’s sustainability endeavours and commitment, this Sustainability Statement is structured into four sections:
SECTION 1 An overview and scope of this Statement SECTION 2 Group’s governance structure in managing the material sustainability
matters SECTION 3 The stakeholder engagement process SECTION 4 The outcome of the engagement
S C O P E
Unless otherwise stated, this Sustainability Statement covers PICORP and all its subsidiaries in Malaysia, Indonesia as well as Saudi Arabia.
“Serving ALLAH, respect for the people and the environment”
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S U S T A I N A B I L I T Y G O V E R N A N C E S T R U C T U R E
The Board recognises its responsibility to promote and instill sustainability into PICORP’s business strategy. It acknowledges the need for strategies and plans to promote and contribute towards sustainable development, with a particular focus on the environmental, social and governance aspects of the business. To this end, during the year, the Board formalised the Sustainability Agenda for PICORP by incorporating it into the Terms of Reference for the Board Risk Management Committee as well as the Corporate Risk Management Committee. A Sustainability Working Group (“SWG”) comprising Group Risk and Compliance (“GRC”), Group Human Resource (“GHR”), Environmental, Health and Safety (“EHS”) Committee and Musolla Committee (“MUSCOM”) led by the Group Executive Director (“GED”) was established to oversee the incorporation of sustainability in the Group’s businesses, as well as to prepare the Group for its inaugural sustainability disclosure.
M A T E R I A L S U S T A I N A B I L I T Y M A T T E R S
To identify what is deemed a material to the Group’s business, PICORP has adopted a materiality assessment process, which is guided by Bursa Malaysia’s Sustainability Reporting Guide and Toolkits.
Recognising the needs to engage with various stakeholders in order to understand their views and concerns, PICORP regularly gets in touch with them through multiple platforms and sessions to understand their views and concerns in aligning the business practices with societal needs and expectations.
Based on the views and concerns obtained from the engagement sessions, PICORP identified the followings as its key sustainability matters. The list is broken down into themes of sustainable business growth, environmental stewardship as well as social responsibility (“EES”)
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The outcome of the engagement with various stakeholder group were summarized below:
Stakeholder Group
Engagement Approach
Frequency of Engagement
Achievements Material area Alignment
Employees • PICORP weekly Stand Up meetings, 1Picorp monthly meeting, Town Hall meetings
• Annual events • Employee
Performance Review
• Training opportunities, i.e. Workplace Safety & Health Training, ISO training
• Talent & Management Programme
• 360 Employee Assessment
• Employee Satisfaction Index
Weekly/Monthly/As needed Annually Annually As needed Annually / As needed
As needed
As needed As needed
• Regular updates on the employees/ corporate activities
• Company events like Family Day, Intercompany Games, Sports Day for better work-life balance
• Long service awards, salary increments and bonus to reward high performers
• Effective performance tracking, improved work efficiency and better career development as well as a solid succession planning programme
• Occupational Health & Safety Management
• Human and Intellectual Capital Development
• Labour practices • Employee
Satisfaction Index
Shareholders/ Investors
• Annual General Meeting
• Analysts/bankers meeting
Annually As needed
• Briefing to shareholders on economic performance, business direction and strategies
• Corporate Governance
• Branding & Reputation
• Economic Performance
ECONOMIC ENVIRONMENTAL
STEWARDSHIP SOCIAL
RESPONSIBILITY
• Community investment • Research & development • Corporate Governance • Branding & Reputation • Economic Performance • Ethical business practices
and transparency • Sustainable value chain
management • Project Delivery • Customer Satisfaction
• Environmental regulatory compliance
• Environmental awareness • Subscribed to DOE
Environmental Mainstreaming Tools
- Environmental Policy (EP) - Environmental Monitoring
Committee (EMC) - Environmental Facility (EF) - Environmental
Competency (EC) - Environmental Reporting
and Communication (ERC) - Environmental
Transparency (ET)
• Diversity • Occupational Health and
Safety Management • Human and intellectual
capital development • Labour practices • Employee Satisfaction
Index • Anti-corruption
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Stakeholder Group
Engagement Approach
Frequency of Engagement
Achievements Material area Alignment
• Visits to project sites Clients / Customers
• Appointment of a key account manager for each customer
• Regular meetings/engagements with Customers to obtain feedback
• Top Management engagement
As needed As needed As needed
• Evaluate capability and deliverability of jobs and services as well as identify area for improvements
• Regular project management meetings
• CEO Interface Session
• Timely response to attend to customer needs
• Economic Performance
• Project Delivery • Customer
Satisfaction
Regulators / Government Authorities
• Corporate governance compliance such as Bursa Malaysia, Security Commissions, Quality Management System (ISO9001:2008) and Environmental Management System (ISO14001:2004)
• Regular meetings with Departmental of Environmental (DOE) on Clean Air Regulations (CAR)
• Environmental compliance at project sites
As needed As needed As needed
• Create reputable branding as well as keeping track with the current market regulations
• To gain understanding on environmental regulations and to work with the authority to encourage compliance by industries
• Complied with environmental requirements for SPAN, IWK, JAS, JPS, local authorities and etc
• Corporate Governance
• Branding & Reputation
• Environmental Regulatory Compliance
Business Partners / Associate Partners
• Strategic planning meetings
As needed • Conduct strategic business planning meetings to improve economic performance
• Economic performance
Local community
• Charitable giving • Internship
opportunities • Public events such
as Hari Raya Open House
• Trainings on environmental compliance and best practices
Annually As needed Annually As needed
• Build positive relationship with the community
• Partnership with university college to provide internship opportunity
• Create local employment at project sites
• Community engagement
• Environmental awareness
Suppliers / Subcontractors
• Suppliers & sub-contractors assessment
• Vendor database through pre-qualification
Annually As needed
• Performance monitoring
• Improve efficiency throughout value chain
• Sustainable Value Chain Management
Media • Media releases • One on one
interview
As needed As needed
• Reach out to public on company’s strategic direction, future aspirations to
• Branding & reputation
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Stakeholder Group
Engagement Approach
Frequency of Engagement
Achievements Material area Alignment
promote company branding and reputation
Non-Governmental Organisations / Industry Associations
• Partnership and support in community and environmental sustainability
• Industry exhibitions and conferences
As needed As needed
• Keeping track with industry updates
• Environmental quality conservation and education
• Involved with Hari Alam Sekitar organized by DOE
• Environmental awareness
M A N A G I N G M A T E R I A L S U S T A I N A B I L I T Y M A T T E R S T H R O U G H W O R K P L A C E , M A R K E T P L A C E ,
E N V I R O N M E N T A N D C O M M U N I T Y
Our business strategy is to drive long-term corporate growth and profitability by mandating the inclusion of economic, environmental and social issues in our business model. Being the pioneer in the air and water quality monitoring system with 22 years of concession experience serving the Department of Environmental, Ministry of National Resources and Environment of Malaysia, PICORP through its subsidiary, Alam Sekitar Malaysia Sdn Bhd (“ASMA”) continues its business expansion in its air, water and waste water strategy with the government agencies, state governments as well as private sectors. In addition, ALS Technichem (Malaysia) Sdn Bhd and its subsidiary, PT ALS Indonesia remain the leading analytical laboratory testing providers in Malaysia and Indonesia. Complementing the operations in Malaysia and Indonesia are the Saudi operations through Saudi ASMA Environmental Solutions LLC and ASMA Advanced Solutions LLC in their pursuits of public health and environmental management as well as water and waste water treatment solution, respectively.
The above is a crystal-clear reflection of sustainability being integral to the way we conduct our business activities and is indeed reflected in the workplace, marketplace, environment, and community in which PICORP and its subsidiaries operate.
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Obedient to Allah, Respectful Culture & Fair Treatment
Recognising employees as the company’s most valuable asset, it is important to provide our people with support and encouragement to create a sense of belonging and make them feel that they are an integral part of the Group. Thus, we are committed to providing a safe, healthy, fair and respectful workplace for everyone in the Group. Our objectives are to maximise work productivity and achieve healthy work-life balance through the creation of a harmonious working environment.
PICORP subscribes to its core value of Obedient to ALLAH by promoting a holistic working environment for all its employees. In this regard, a resident religious advisor is recruited to fulfil the religiousity and spirituality needs of the employees. Regular Laman Hidayah (luncheon religious sessions) are conducted covering diverse topics of rituals and daily lives which were delivered by Ustaz and Ustazah from Malaysia and abroad.
To inculcate this holistic culture, new employees are required to attend an orientation session which includes modules on becoming professionals Muslim specially tailored to PICORP. This
WORKPLACE SUSTAINABILITY
Our values are abiding by the orders of Allah
and avoiding His prohibitions.
We advocate a healthy
living style: Work-life balance & Raising health and safety
awareness.
We value diversity and
embrace individual differently, including
women empowerment and multicultural.
Our Talent Management strategy helps us find the right talent and ensure that our people excel both
personally and professionally.
Obedient to Allah, Respectful Culture &
Fair Treatment
Safe & Healthy Workplace
Embracing Diversity & Inclusion
Talent Management Programme
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onboarding programme help to improve employee integrity, self-confidence and productivity in making sure business objectives are achieved.
In addition, congregational prayers are organised at MERCU PICORP for the compulsory prayers during work days.
Having a workforce which comprises individuals from multicultural backgrounds, with varying age group, experiences and expectations, in Malaysia, Indonesia and Saudi Arabia, PICORP provides a respectful and zero discrimination working environment to all its employees and adopts fair treatment to everyone, regardless of gender, ethnicity, age group, sexual orientation, disabilities, religion, political inclinations and nationality.
Respect for human rights
We recognise the importance of human rights in our workplace as we believe that a respectful workplace creates a happy employee and ultimately conveys productive results. We comply with the local Employment Act in the country we operate. We do not tolerate human rights abuse among our employees and we ensure equal opportunities in the workplace.
Communication
We have a whistleblowing system as a mechanism to channel employee grievances to the highest authority in PICORP. In addition, PICORP holds Speak Up Meeting as well as 1PICORP Speak Up meeting on a weekly and monthly basis to allow employees to express their views and concerns.
Environmental, Health and Safety (EHS) is our fundamental concern in all aspects of works within the Group. Our excellence is governed by the safety, health and well-being of our employees and associates and to reflect this, a Health, Safety and Environmental Policy has been established since 2012 across the Group.
Laman Hidayah conducted in 2017 97 2,440
participants
Mukmin Profesional Programmes in 2017 4 Mukmin Profesional
participants 90
Safe and Healthy Workplace
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Awareness training are held for employees to emphasise on the importance of workplace health and safety. EHS team members at both offices and project sites are actively involved in conducting workplace health and safety related activities to ensure each employee is well-educated on safety and health knowledge.
Activities conducted are:
CPR : Cardiopulmonary Resuscitation NIOSH : National Institute for Occupational Safety and Health ERT : Emergency Response Team OSH : Occupational Safety and Health
Guided by this policy, we are committed to foster a safe and healthy workplace to all employees, customers, contractors and community in the offices and vicinity where we operate as well as at our project sites. The Board oversees the healthy and safe workplace so the Group is able to protect its assets, ensure business continuity and maximise productivity. To assist the Board, we have an experienced consultant to advise and establish the Safety, Health & Environment aspects of the workplace in PICORP.
We ensure that the business is driven by highly reliable and competent workforce through robust hiring process while promoting diversity and inclusivity.
Fatality among work-related employee or subcontractor for the past three years
0
Embracing Diversity & Inclusion
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Workplace Diversity Policy
Employees 511
335 2017 [66%] 347 2016 [66%]
176 2017 [34%] 178 2016 [34%]
75% 5% 2%
18%
72% 5% 3% 20%
Gender of Employees
2017 2016
Age Group of Employees
Millenials
Gen – X
Baby boomers
Malaysian
Indonesian
Saudi Arabian
Sudanese
Others
A Multicultural Society
Employees
260 174 12
58 7
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Women Empowerment
PICORP treats both male and female employees equally in terms of salary, staff benefits and welfare as well as career opportunities. We recruit talent based on experience and related technical knowledge. Gender is not a consideration in our recruitment process. Here at PICORP, female employees are given opportunities to hold senior positions should they are capable in delivering the job.
All efforts related to delivering the workforce and leadership capabilities needed to execute on the business strategy. Our scope of talent management starts from Talent Acquisition (TA), Talent Development (TD) and Talent Retention (TR) which includes strategy, systems, processes and practices. In other words, our talent management is our investments and activities to enhance recruitment process, development programme and retention of employees.
A. Talent Acquisition (TA) Recruiting | Onboarding | Outsourcing | Internship Program
People are the foundation of our business. Their integrity, commitment, knowledge and performance bring life to PICORP’s strategy and drive business results. PICORP adopts a robust recruitment strategy to ensure that the right people with the right integrity and skills are deployed to the best positions.
Talent Management Programme
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B. Talent Development (TD) Training | Coaching and Mentoring | Leadership and Management Development | Succession Planning | High Potential Talent Pool
Continual learning and development is encouraged and supported at PICORP. Without doubt, our integrated people development model enables employees to play an active role in the learning and development process. Employees are encouraged to enhance their knowledge by pursuing tertiary educations. To further demonstrate its support, PICORP approves a policy to partially subsidise the tuition fees for those who pursue their Master’s degree.
Last year, PICORP marked another milestone in its journey towards developing people. To expand its talent pipeline and increase employee engagement, PICORP rolled out a Talent Management Programme for its Level 1 Management.
C. Talent Retention (TR)
High Potential Program | Performance Program | Rotational Program | Career Counseling | Diversity Program | Retraining | Lesson Learned Databases
We see our employees as the backbone of our success and recognise employee’s contribution by rewarding them through salary increment, bonus, promotion or upgrading. Besides that, long service awards in the form of Umrah packages for the employee and his or her spouse are conferred to employees who work more than 10 years as an appreciation to their loyalty to the Group.
RM120,908 2017 Invested for staff training in 2017 compared to RM197,055 in 2016
TRAINING EXPENSES
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We are committed and strive to deliver the highest standard of corporate governance and transparency throughout our business operations to deliver sustainable growth to our stakeholders. These guiding principles have been embedded in the PICORP culture and we shall continue to conduct ourselves in an ethical, transparent and accountable manner.
Obedient to ALLAH
Guided by PICORP CORE VALUE of Obedient to ALLAH, all employees of PICORP possess the highest standards of self-regulation as well as corporate governance and integrity.
Code of Ethics and Conducts
All employees are guided by the Group’s Office Rules which is clearly communicated to all new recruits upon their joining the Group. Each employee is briefed clearly about do’s and don’ts as well as Group’s expectations on the integrity in all areas of our business operations.
MARKETPLACE SUSTAINABILITY
Healthy Economic
Growth Embedding Integrity &
Ethics in Business Practices
Commitment to our
Customers
Sustainable Value Chain Management
Adopting the highest standards of corporate
governance: Code of Ethics &
Conducts and Risk Management
Healthy economic performance to create
long term returns to shareholders
Strive for most cost-effective value chain
management Supplier and sub-
contractor evaluation process
Deliver quality solutions to customers and
review our performance through Customer
Satisfactory Survey: Fast-response to customer service
Embedding Integrity & Ethics in
Business Practices
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Risk Management
Our risk management practices are generally aligned with the principles of ISO 31000:2010. The Group adopts a risk management framework that is integrated into and where appropriate embedded into the day-to-day business activities and management decision framework of the Group.
PICORP safeguards its shareholders’ investments by identifying and mitigating potential risks through its ERM Framework. Risk Management function in PICORP is championed by the Group Risk and Compliance team alongside the Corporate Risk Management Committee where both directly report to the Board Risks Management Committee, guided by our Risk Management Policy.
PICORP is committed to deliver healthy and sustainable returns to its shareholders. For the FYE 2017, PICORP generated a PBT of RM12.8 million as compared to RM6.3 million in 2016 despite only having the concession income for a quarter of the year.
Economic Data (Group Level)
2015 (RM)
2016 (RM)
2017 (RM)
Revenue 80,529,140 87,402,041 83,876,301 Profit Before Tax (PBT) 12,859,504 6,287,467 12,823,698
Healthy Economic Growth
Revenue Contribution by Business Segment Environmental Consultancy &
Monitoring Services Laboratory Testing Services
Wastewater Treatment &
Solution
2017 2016
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PICORP is committed to ensuring a fair and neutral value chain throughout the Group’s operation to ensure the most cost-effective solutions and efficient deliverability.
In addition, the Group continues to work with third-party vendors and service providers who, at a minimum, uphold the relevant environmental laws, regulations and policies of the countries in which they do business. In this regard, we are committed to maintain a green and clean environment guided by our Integrated Management System Policy and ISO 14001:2015 Environmental Management as well as ISO17025 for our laboratory analysis and consultancy where applicable. The ISO certification is reviewed annually by the relevant accreditation agencies.
Environmental Pledge
Sustainable Value Chain Management
For a better future in our environment, we request all our Suppliers and Contractors to pledge and comply with our Environmental Policy. In 2016, 14 contractors signed the environmental pledge. The number of signing environmental pledge increased to 29 contractors in year 2017.
Creating environmental awareness among
suppliers and customers
2017 2016
Malaysia
Indonesia
Saudi Arabia
Revenue Contribution by Operating Countries
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Vendor Evaluation
We review our suppliers’ performance through annual vendor evaluation process. A total of 74 vendors were evaluated in 2017 with average score of 79% against 53 in 2016 with average score of 81%.
We categorised performance of our vendor into 3 categories; A (Excellent, maintain supplier), B (Satisfied, inform their performance and seek for improvement) and C (Dissatisfied, discontinued with the services).
2017
ASMA ENVIRONMENTAL PLEDGE FOR THE SUPPLIERS AND VENDORS
Dear Sir/ Madam,
Alam Sekitar Malaysia Sdn. Bhd (ASMA), as an environmental company that is committed to contribute to sustainability in Malaysia and further our Environmental Performance, has implemented Environmental Management System (EMS) complied with the ISO 14001standard requirements.
In keeping with the ASMA Environmental Management, we adhere to the attached environmental policy and request that all our Suppliers and Contractors to ensure the better future in our environment by observing the following environmental requirements.
• Comply with all legal and other requirements; • Minimise the production of all kinds of waste produced while carrying out any works
outside or within our premise; • Control the use of materials and resources (e.g. electricity, fuel, chemical, paper, etc) to
be both energy and resource efficient; • Ensure that wastewater is discharged to in accordance with legal requirement; • Reuse and recycle in material/ waste wherever possible; • While working on any of our premise contractors are required to ensure that all waste
material are properly handled, stored and disposed of in an efficient and sensitive manner to avoid any spillages and leakages;
• Regularly maintain all vehicles used for the purpose of conducting business with the company to ensure that noise and air emission are controlled;
• For supplying products to ASMA, it is encouraged to use recyclable packaging and take back or reuse the transportation packaging wherever possible.
Supplier Performance Evaluation 2017 Supplier Performance Evaluation 2016
2016
A B C
A B C
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We seek to constantly improve ourselves to provide the best possible solutions to our customers. In order to meet our customers’ expectations, customers’ feedback is deemed important to us. Hence, Customer Satisfaction Survey, conducted annually, is reviewed and analysed to identify any shortfalls in which any remedial action shall be taken, where necessary.
Commitments to our Customers
78% 2017 76% 2016
86% 2017 77% 2016
Customer Satisfaction Survey
Lab Services Environmental Services
2017 Achievement
Ranked #1 in Makkah Health Monitoring
Awarded the 2017 IKM President Laboratory Award (Commercial Testing Laboratories) for excellent achievement in the development
of the professionalism and practice in chemistry
1st international commercial Halal Panel laboratory approved by JAKIM in Malaysia
DOE’s certified provider for the Continuous Emission Monitoring Systems (“CEMS”) and Predictive Emission Monitoring Systems (“PEMS”)
Recognised as Petronas MLNG Grade “A” contractor for Petronas LNG Complex Predictive Emission Monitoring System (PEMS) project
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ENVIRONMENTAL SUSTAINABILITY
Business for Environment
Technology for Environment
Process for Environment
Our products aids companies to comply with environmental regulations which ultimately
contribute to a cleaner environment and healthier
nation.
Our technology is not only
environmental friendly but also catalyst in environmental
protection.
Activities within the company
which are environmentally cautious.
DESCRIPTIONS DESCRIPTIONS DESCRIPTIONS
Monitor the level of emission from selected industries
Lab Testing (Environmental, Food, Pharmaceutical and
Tribology)
Innovative waste water treatment technology (Bi-Act
SDO) Predictive Emission Monitoring
System (PEMS)
Ensure e-waste contractor complies with DOE
requirements
Ensure workshops carry out proper e-waste disposal Drinking Water Monitoring
TARGET GROUP TARGET GROUP
TARGET GROUP
Any industries applied to Environmental Quality Act 1974 and Food Safety Act
Developers and IWK Oil & Gas Industrial Player
Utilities Provider
PICORP’s employees, subsidiaries, suppliers and
sub-contractors
OUTCOMES OUTCOMES
OUTCOMES
Helps improved the quality of
air and water
Compliance to Food Safety Act
- Low power consumption - Land saving - Low sludge yield - Excellent effluent quality
Improve the quality of environment by recycling, proper e-waste disposal, scheduled waste management and selection of environmental friendly vendor
ACHIEVEMENT ACHIEVEMENT
ACHIEVEMENT
• Received DOE approval as Mobile CEMS and PEMS certified provider
• Environmental Quality Monitoring (Air & Water) for Government of Malaysia (1995-2017)
• Halal Panel Lab appointed by JAKIM
• 2017 Frost & Sullivan – Malaysia Sewage Treatment Technology Innovation Award (Bi-Act-SDO Hybrid Waste Water Technology)
• Grade A Contractor Performance Assessment by Petronas MLNG
Improve the quality of environment by recycling, proper e-waste disposal,
scheduled waste management and selection of environmental
friendly vendor
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ENVIRONMENTAL MAINSTREAMING GUIDED SELF-REGULATION (“GSR”)
Adopted from Guided Self-Regulation (“GSR”), Department of Environment (2017)
Intention
Department of Environment’s Goal: Self Regulation
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Environmental Awareness
Training Audience No. of Participants Water Quality Monitoring EiMAS 20 Isokinetic, CEMS and PEMS Practical Training for Departmental of Environment
EiMAS 20
Example of Land Saving using Bi-Act SDO
SDO Area Conventional System % of Land Saving
Project A (19,950 PE) 5,058m3 11,735m3 56%
Project B (8,635 PE) 2,708m3 6,272m3 56%
Project C (785 PE) 750m3 915m3 18%
The table above shows that the Bi-Act SDO technology provides land saving up to 50% compared to the conventional system. For project A and B, the percentage of land saving is 56% while land saving for Project C is about 18%. It demonstrates that the bigger capacity of a wastewater plant, the higher percentage of land saving.
Technology for Environment
1 Bi-Act SDO
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A Predictive Emission Monitoring System uses an advanced software model to predict emission rates of various sources such as Boilers, Gas Turbine, Furnace, Cogenerations, etc. PEMS utilises existing inputs from the process control system to determine the emission rates of various pollutants that are regulated. In other words, PEMS is an air emission monitoring system that helps us to monitor the emission data and control pollutants released into the atmosphere which may be detrimental to environmental sustainability.
2 Predictive Emission Monitoring System (“PEMS”)
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School Students
University Students
Charity Homes
Other Community
School Adoption Programme
Internship Programme Free Food
Philanthropic & Homeless
Local employment Blood Donation
Aidilfitri Open House and Celebration
To help the nation produce more Hafiz and Hafizah, we have established a School Adoption Programme where we contributed RM24,000/year (RM2,000 monthly). Besides, zakat contribution to other schools are as below:
COMMUNITY SUSTAINABILITY
“We care about the communities that sustain our business and we are committed to giving back to
these communities through long-term partnerships, volunteer efforts and targeted social investments.”
RM66,817 to the community compared to RM70,563 in 2016
Gifts and Donations
2017 | RM252,521 Benefited 16 schools and 1,986 students
2016 | RM161,191 Benefited 13 schools and 1,733 students
Zakat Contribution
SCHOOL STUDENTS
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Knowledge Sharing Session with the Management and Science University (MSU) students
This Corporate Social Responsibility programme involves sharing and dissemination of industrial practical knowledge to the academics. While the global education remains focused on graduate skills and employability, the absence of a shared communication between student, academic and industry stakeholder groups reflects that defining industry skills requirements is both essential and challenging. Under this knowledge sharing programme, ALS Malaysia imparts essential industrial related laboratory technical knowledge for Science students from local tertiary education establishment.
OSH Day and Blood Donation Campaign was organized to create health and safety awareness and encourage blood donation awareness among PICORP employees and the community. Activities held included Blood Donation by National Blood Centre (“NDC”), Free Health Screening, Light Exercise, Health Talk and Safety, and Health Booths.
University Students
Community
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On the other hand, ALS Malaysia was appointed by JAKIM as one of their Halal panel laboratories on July 25, 2017. Being one of JAKIM’s official panel laboratories, ALS Malaysia put in place essential Halal training programmes to educate the staffs and keep abreast with the latest technology trends in the realm of Halal. ALS Malaysia carried out this Halal Awareness Training on November 9, 2017 with Institut Penyelidikan Produk Halal UPM (IPPH UPM) to introduce the meaning of halal and segments related to halal product and services available not only in Malaysia but also globally. Objectives of this training is to learn more about Halalan Toyyiban and Haram concept according to Science and Syariah perspectives. The trainer also provided the insights on basics in Halal industry that includes Halal market, prospects and basic Islamic transactions.
PICORP Group Raya Open House was held on July 14, 2017 to celebrate Aidilfitri festive season with our stakeholders. We invited our suppliers, customers, tahfiz students and public in the neighbourhood to celebrate with us. The objectives are to maintain good relationship and foster harmony among PICORP’s stakeholders.
C O N C L U S I O N
A sustainable financial performance balanced with a healthy performance on environmental, social and corporate governance (ESG) issues require persistent and long-term effort. Hence, we remain committed to achieving more milestones in our marketplace, workplace, environmental and community sustainability in the coming years to provide a better and healthier living environment for all.
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